Replies to post #5127 on Nexus Energy Services Inc (IBGR)

[TheFinalCD]

HUGEEEEEEEEEEE WEEEEEEEEEEE


HERE ARE THE ANSWERS FOR YOUR QUESTIONS!! I ADDED 2 MORE TO THE LIST!!


Raj,

Here are your answers:

1.Financing is secured through the Preferred C issue, which is not straight convertible issue. What that means is that there is not a straight convertible feature with this issue, and it does not dilute the company's current position. It is more tied to the success of Aquaprin.

2.Roll out of Phase I will bring Aquaprin to market, so the answer is yes. Phase II is designed to meet the expected incremental demand for the product as it becomes accepted by the market.

3.There is no need to increase Authorized Shares at this time, and the company does not anticipate having to increase its Authorized anytime in the near future.

4. Big Star Media held a note at the time of the release, which was reporting for the December 31, 2010 period. That is no longer the case, and the company has no debt.

5. These shares are not restricted, and are accounted for in the Free Trading Shares listed for the company. There are several that accumulatively hold these shares. At this time I am not sure that I can tell you who each of them are, but I will request a legal opinion from Joe and let you know. If he gives me the thumbs up (which he usually does), I will send you the list. By the way, this was done to clear up any debt issues prior to finishing the transaction. Instead of having uncertainty in converting to an unknown number of shares and being infinite, the company negotiated a very specific number of shares and completed the transaction with a finite number. As for the shareholders, disclosure is tied to the information flow, and whether they are considered insiders. If they are not, they have the right to "opt out" of the NOBO.....just as you do. If they are insiders, it is disclosed in the filings.

6. The patents that are pending are for improvements on the previous patents that make up the underlying technology for Aquaprin, and the extension products that are expected to be produced as well. I don't know that there is a timeline on when they would be released to the public domain. Obviously, for the protection of the technology, we have no interest in disclosing the difference, no more than Coca Cola has interest in telling someone their secret recipe.

7. The Preferred C issue has an underlying subscription, and all of the information is included in it. There is no feature to convert common shares at a predetermined price. The issue is tied more to the profitability of Aquaprin, which is the reason it is not just a straight equity sale. No conversions will be made for at least one year, and those would be made with restricted shares at straight market price, without discount, at the time of conversion, if chosen. Under the Preferred C, the company controls the conversion option, not the investor. Par value reflects the value of the assets of the company, and face value reflects the share price of each share of Preferred C. Preferred C does not hold any voting rights, as those have all been assigned to Preferred A.

8. The company did receive venture capital prior to going public, and that capital converts to Preferred C. The company is looking to build a strong business around Aquaprin, not sell the company. There is certainly no pre-arranged plan to entertain a buyout. That said, if it were to occur, it would to assessed on its merits, like any other business decision.

9. There is no restriction on free trading shares as issued. They are free to be traded, as defined by The Act. We report the float as it is defined by accepted accounting procedures....not necessarily what Investopedia tells us to do. The float is defined as the actuals shares that have been deposited with CEDE, and are freely available to be traded. The vast majority of these shares are held in certificate form, and have not been deposited. If and when they are deposited, the number of shares in the float will reflect those deposits. The free trading shares will not change.

10. Your assessment of outsourcing does not meet with what we know. It is much more expensive, does not protect the technology adequately, and does not serve to produce additional products. In fact, it does not even get the product to market faster. Remember that your CEO spent a good deal of time as an "outsourcer" of pharmaceutical products. It was the first idea to market, and has been vetted thoroughly.

Thanks for taking the time to ask very good questions, and we appreciate your interest in Pharmstar Pharmaceuticals.

As always, if you have a question....don't hesitate to ask.

Investor Relations

POOOOOOOOOOOOOOOOWWWWWWWW!!!!!!!!!! BAM!!!!!!!!!!!

[naturalborninvestor]

Nice to see a management be transparent as here. Certainly a rare event in Pinkyland. They have their act together you can tell...
The preferred C should not be a worry at this point as is the now extinguished note to former owners. I, in principle, also agree that it is more beneficial to convert debt into a pre-defined number of shares than to have a convertible instrument drive down the share price and conversion price point.
But I am also of the opinion that what is commonly referred to as the "float" is higher by the number of "free trading" shares, potentially as high as 91.5m.
Medium-term, the stock is a good candidate and I will put it firmly on watch. Short-term, I think we will have to churn a bit longer through some "free trading" shares.